Check your policy limits annually

In a previous post in this series of cost savings tips, I stated that cancelling or reducing insurance coverage is not a good choice when eliminating some expenses. Reducing or eliminating coverage could very easily cost you much more in the long run. But there is a situation that is an exception. Check the limits of your policy on an annual basis to determine if the value of your belongings equals your coverage.

We're hearing that quite a few people have sold jewelry, collectibles, fine art and other similar items because of the economic recession. If you have decluttered, downsized, sold or discarded items, you will want to let your insurance agent know. If you have riders on these items, and have sold or given them away, make sure those riders are cancelled. This will reduce the amount of your premium, bring it to where your coverage is in line with the value of your belonings - and also save you money on your premium.